Reflections on the Black-Scholes Model and its Applications

Reflections on 50 years after publication of the Black-Scholes technology and model, the development of listed option markets, their efficiency and the use of options in dynamic risk management strategies will be my major focus. Most of finance has concentrated on linear relationships such as betas, factors, and anomalies using historical data. The future will direct more research to understand how to incorporate option pricing techniques into time and the effects of changing risks on compound returns, investor decision making and corporate finance.